Make sure to first get your pc to recognize your usb drive, I always format first with NTFS, then use the Usb eXtreme win32 utility to format it to FAT32.
From there you just make your folder of SWAPMAGIC on the drive, copy the usbadvance.elf to that folder and rename it too SWAPMAGIC.ELF
Transfer your games by whichever tool, then plug in your usb drive to your PS2 and start up Swap Magic and it should detect the elf file and boot to USbadvance where you will then see your games listed.

From there you just make your folder of SWAPMAGIC on the drive, copy the usbadvance.elf to that folder and rename it too SWAPMAGIC.ELF
Transfer your games by whichever tool, then plug in your usb drive to your PS2 and start up Swap Magic and it should detect the elf file and boot to USbadvance where you will then see your games listed.

well my usb hard drive is already recognized by my pc. its in FAT32 format. so i have to transfer my games from my pc to the usb hd by a certain way? i can't just copy them over the the drive? thats kinda odd but ok...i'll give all that a try...oh, does the file have to be in the iso format? b/c i have a game that needs to be extracted and it will only work on a ntfs formatted drive and my pc and xternal hd are in fat32 and i don't want to lose all the files on them.

From there you just make your folder of SWAPMAGIC on the drive, copy the usbadvance.elf to that folder and rename it too SWAPMAGIC.ELF
Transfer your games by whichever tool, then plug in your usb drive to your PS2 and start up Swap Magic and it should detect the elf file and boot to USbadvance where you will then see your games listed.

well my usb hard drive is already recognized by my pc. its in FAT32 format. so i have to transfer my games from my pc to the usb hd by a certain way? i can't just copy them over the the drive? thats kinda odd but ok...i'll give all that a try...oh, does the file have to be in the iso format? b/c i have a game that needs to be extracted and it will only work on a ntfs formatted drive and my pc and xternal hd are in fat32 and i don't want to lose all the files on them.

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Yes the games have to be transferred by either USB insane or the USbextreme utility. USB insane will transfer the game directly from the ISO or the Drive. I usually mount the ISO with Daemon Tools or Nero if I have too, but mostly just transfer directly from ISO.
The games when transferred to the usb hd are then in a format the usbadvance.elf can read.

To not lose your files if they are already on the drive, then just copy them back to your computer.
What game do you have that only works on NTFS drive, cause I have not heard of that with PS2 games.